SCOTLAND will become more "vulnerable" to fraud than the rest of the UK unless police and government address weaknesses in the way they tackle the crime, a new report warns.
Paddy Tomkins, Scotland's Chief Inspector of Constabulary, has identified a raft of improvements needed in the way police deal with fraud, which is thought to be costing the UK about £13.9 billion a year – or £330 for every person in the country.
These include "inconsistencies" in the handling of reports of fraud, which he claims police regarded as a "low priority".
His report echoes concerns raised by The Scotsman yesterday that Scotland could be falling behind the rest of the UK in the fight against the crime.
The report states: "The range of types and scale of fraud is almost limitless – from a child using a parent's debit card to top up a mobile phone, to international companies using auditors to conceal inherently criminal activity over years."
However, the report highlights "little involvement" by police and government in Scotland in a drive against fraud led by the Attorney General.
As part of the initiative, a national fraud reporting centre will be created to improve intelligence against serious organised crime.
Mr Tomkins' report found that while Scotland had a well-developed strategic approach to tackling drugs, "the same cannot be said of fraud".
"Consequently we are in danger of failing to keep pace with developments in the rest of the UK," the report states.
The report recommends steps police and the Scottish Government can take, including reviewing legislation to ensure anti-fraud measures "are no less comprehensive or robust than elsewhere in the UK".
Mr Tomkins also calls for the creation of a national fraud team to spearhead a crackdown on the crime, and says a nationwide fraud squad may have to be established to track down the country's biggest fraudsters.
The report is also critical of the way police treat reports from the public about card fraud.
Mr Tomkins told The Scotsman that victims should receive a better service, and described the way police respond to reports as "not appropriate" in many cases.
Many victims are simply told to contact their banks, while there is confusion among police over how fraud is recorded.
He added: "Victims of fraud need to be given clarity about the standard of service they can expect."
Last night, Baroness Scotland, the Attorney General, described the report as a "positive step forward" in the fight against fraud.
And Kenny MacAskill, the justice secretary, added: "Scotland's reputation for financial services is a cornerstone of our economy and needs to be protected.
"We also know counterfeit goods sold fraudulently undermine Scottish businesses and endanger life and safety."
"A spokesman for the Association of Chief Police Officers in Scotland said it would consider how to implement the report's recommendations.
